Credit delivery and sustainability of microcredit schemes in Nigeria

Purpose The purpose of this paper is to examine the effects of access to credit through microcredit institutions on entrepreneurial performance and assesses the loan performance of public credit schemes in Nigeria in order to determine the sustainability of such schemes. Designmethodologyapproach Th...

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Bibliographic Details
Published in:Journal of enterprising communities. 2009-03, Vol.3 (1), p.71-83
Format: Article
Language:English
Subjects:
Credit
Entrepreneurship
Loans
Nigeria
Online Access:Get full text
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Summary:Purpose The purpose of this paper is to examine the effects of access to credit through microcredit institutions on entrepreneurial performance and assesses the loan performance of public credit schemes in Nigeria in order to determine the sustainability of such schemes. Designmethodologyapproach The study employed qualitative approach and exploratory perspective, using primary and secondary data obtained at beneficiary and institutional levels. Findings The loan repayment rates were generally low for many of the schemes, and this confirms the problems of public sector lending, with implications for the sustainability of the schemes. Many reasons were given for the low repayment rates, among which were poor credit culture of the schemes managed by public sector and the attitudinal nature of Nigerians towards public funds. Practical implications There is a need for policy makers, researchers and entrepreneurs to improve on the designing of microcredit schemes in order to be sustainable. Originalityvalue This paper makes a first step towards comparing the performance of public and private microcredit schemes in Nigeria.
ISSN:1750-6204
DOI:10.1108/17506200910943689